Variable

Description

Dependent variables

New patent applications after round

Number of additional U.S. patent applications after funding round (patent applications between 12* (24**) months before and 12 (24) months after funding round are counted); *M1, **M3

New citation-weighted patents after round

Number of (three years forward) citations of new U.S. patent applications after funding round.

New trademark applications after round

Number of additional U.S. trademark applications after funding round (trademark applications between 12* (24**) months before and 12 (24) months after funding round are counted); *M 2, **M4

Independent variables

Intellectual property characteristics

Patent applications before round

U.S. patent applications that a start-up filed before a round

Patent dummy

Allows distinguishing between start-ups that have not applied for any U.S. patents prior to first funding (=0) from those that have

Citation-weighted patents before round

Number of (three years forward) citations of U.S. patent applications filed before funding round

Citations dummy

Allows distinguishing between start-ups who have no patents cited prior to first funding round (=0) from those that have

Patent literature bwd. references

Number of backward references in patent literature of U.S. patent applications filed before funding round

Non-patent literature bwd. references

Number of backward references in non-patent literature of U.S. patent applications filed before funding round

Trademark applications before round

U.S. trademark applications that a start-up filed before a round

Trademark dummy

Allows distinguishing between start-ups that have not applied for any U.S. trademarks prior to first funding (=0) from those that have

Investment characteristics

Round 1 dummy

Refers to the number of funding rounds, Equals 1 for first funding rounds, 0 otherwise

Round 2 dummy

Refers to the number of funding rounds, Equals 1 for second funding rounds, 0 otherwise

Round 3 dummy

Refers to the number of funding rounds, Equals 1 for third funding rounds, 0 otherwise

Number of VCs investing in round

Number of VCs investing in a funding round

Total amount invested in start-up by VC

Total amount of funding in USD provided by a VC throughout all rounds. In case of multiple VCs in one round the average is used

Investor Characteristics

VC age

Time in years between a VC’s first investment in its company history and focal funding round date. In case of multiple VCs in one round the average is used

VC experience

Counts number of investments a VC already has undertaken prior to funding round date. In case of multiple VCs in one round the average is used

Start-up Characteristics

Start-up age

Age of start-up at funding round date (in years)

Start-up industry dummies

Six variables to distinguish between start-ups’ industries: “Biotechnology”, “Computer Software and Services”, “Communications and Media”, “Medical/Health”, “Semiconductors/Other Elect” and “Other”

Start-up region dummies

Six variables to distinguish between start-ups’ regions: “N. California”, “New England”, “New York Tri-State”, “S. California”, “Southwest” and “Other”